Quarterly report pursuant to Section 13 or 15(d)

Commitments and contingencies

Commitments and contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Future minimum lease payments under all non-cancelable operating leases as of September 30, 2014 consist of the following:



Years Ending December 31,	Amount
2014	$	152,434
2015	571,349
2016	521,400
2017	516,640
2018	499,122
2019 and thereafter	2,742,217
Total	$	5,003,162

For the three months ended September 30, 2014 and 2013 rent expense was $105,588 and $78,412, respectively. The Company records rent expense on a straight line basis over the term of the lease. For the nine months ended September 30, 2014 and 2013 rent expense was $310,067 and $364,308, respectively.

Letters of Credit

A letter of credit of $583,073, the original value of the short term investment prior to an increase from interest income of $1,965, was outstanding under a revolving bank credit facility needed to collateralize a performance bond on a certain installation project. This revolving bank credit facility expired June 14, 2014, but the short term investment continues to secure the performance bond. In addition, approximately $1,055,000 in a letter of credit was required to collateralize performance bonds on several installation projects. This letter of credit is collateralized by an account owned by John N. Hatsopoulos and expires July 22, 2015. In each case, a performance bond has been furnished on projects, and would be drawn upon only in the event that Tecogen fails to complete the project in accordance with the contract.